We’re in the home stretch before the 2024 presidential election. It will undoubtedly have significant economic and market impacts. But a trio of MoneyShow expert contributors recently highlighted some names that should prosper no matter who wins. Find out which election-proof stocks and funds they like.
Nilus Mattive Weiss Ratings Daily
Donald Trump and Kamala Harris have distinctly different ideas on how to run the United States. But I can almost guarantee you that no matter which of them prevails on Nov. 5, our national debt will continue rising. That’s why the SPDR Gold Shares ETF (GLD) is worth buying, observes Nilus Mattive.
After all, debt rose every single year under Donald Trump. It has continued to rise every single year under the Biden-Harris Administration. And indeed, other than a brief period of moderation between 1998 and 2001, it has risen every single year for as long as I’ve been alive.
This is why there are actually some tremors in the Treasury market itself right now. However, I think the bigger tell is the recent action in gold, which is the oldest and most established antidote to rampant money-printing, inflation, and reckless government spending.
Not a lot of pundits are talking about it, but gold has been having an absolutely stellar year — rising a staggering 31% versus a 22% increase in the S&P 500. That’s nearly 50% better performance from the yellow metal in a year that stocks are performing twice as well as usual.
Again, this is because more and more investors are waking up to the fact that cash is rapidly becoming trash. And as I said a moment ago, I don’t expect that to change no matter who wins on Nov. 5.
The reality is that our national debt has become a giant snowball rolling down a hill…growing larger with every new annual deficit…compounded by larger and larger amounts of interest. Can Washington keep things somewhat manageable with enough economic growth…lower interest rates…higher taxes…a return to fiscal sanity…or some combination thereof?
Yes. However, that’s the best-case scenario — a continued erosion of the dollar’s purchasing power over time rather than a complete U.S. government debt collapse.
Therefore, it makes sense to own some gold and gold-related investments no matter who ends up in the White House. Not only can gold continue to rise along with America’s debts, but it also provides a terrific hedge against other risks, too.
So, if you don’t have exposure to gold, GLD is a great way to do it. I like other forms and related investments as well — everything from physical gold to certain mining companies.
Recommended Action: Buy GLD.
Elliott Gue Energy and Income Advisor
The presidential election is just under a week away – and few sectors are attracting more political noise than energy. Our advice: Tune out as much of the heated rhetoric and breathless campaign promises as you can. Stay focused on what’s important to investment returns. Two names that could prosper no matter who wins are New Fortress Energy Inc. (NFE) and Energy Transfer LP (ET), writes Elliott Gue.
We believe it makes sense to build positions in the companies likely to profit the most from this still-very-much-unfolding energy price cycle. Earlier this month, we presented at the MoneyShow Orlando with a basic message: Energy is a growth industry with peak demand nowhere in sight.
This is an “all of the above world,” where no one energy source is perfect, but almost all are set to grow rapidly for years to come. That’s worth keeping in mind as popular investment media fixates on trying to pick winners and losers, based on election forecasts that at this point amount to little more than guesswork.
That said, there is one group of energy companies we think will pick up steam either way: Those developing and operating LNG export facilities, along with related natural gas production and needed infrastructure like pipelines and gathering systems.
The Biden Administration has already resumed approvals of LNG export licenses, starting with NFE’s Altamira facility in Mexico. That project needed US government approval because US gas pipelines feed it. And now, ET is reportedly near an arrangement for a proposed LNG export facility in Louisiana.
This unfreezing of permits for LNG development would likely accelerate under a prospective Trump Administration. But no matter who wins the election, expansion of US natural gas exports appears to be getting back on track. That’s creating opportunity for system expansion and earnings growth at a time when producers are still very wary of investing heavily in output — and midstream and downstream companies are restraining their expansion for that reason.
Recommended Action: Buy NFE and ET.
William Patalon Stock Picker’s Corner
We talk about Wealth Builders versus Wealth Killers – and recognizing the difference between the two. One of the biggest Wealth Killers? Scams, including those related to “passive income.” My advice: If you want generous income, focus on names like Angel Oak Financial Strategies Income Term Trust (FINS), suggests Bill Patalon, chief stock picker.
I see scams all the time. And my years of experience have taught me that those scams gain effectiveness by keying on investor emotion — whether that emotion is greed or fear. They also gain effectiveness by keying on “current events” — like inflation, the need for income, and how uncertain consumers feel these days.
Want an example? Look at all the ads running for “passive income.” By definition, “passive” means “you don’t really have to do anything to get it.” But some of these ads are for “programs” or “side hustles” or “activities”…things you have to pay for…side jobs you have to take…moves you need to make.
Most of these are really designed to separate you from your money. They involve risk — and are payoff “long shots.” Even the best ones call for you to invest extra time. In my book, that’s not “passive.” And many of these also aren’t “income.”
What folks really need to do is look at income as “cash flow” — what actually goes into your pocket after taxes, the prevailing market interest rate, and the rate of inflation. That’s why I recently assembled a “Baker’s Half-Dozen” (which means seven, not six) list of income stocks – each with yields of better than 10%. That, my friends, is real “cash flow.” And it really is “passive” – once you make the investment, you keep getting paid until you cash out.
FINS is on that list. It’s a Big Board-listed, closed-end fund that invests primarily in financial-sector debt — including structured debt and mortgage-backed securities. It aims to keep at least 50% of its holdings invested in investment-grade debt. And it also buys financial-sector stocks, both common and preferred.
FINS recently was paying out $1.31 a share — as monthly 11-cent dividends. That equates to a yield of around 10%.
Recommended Action: Buy FINS.
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